Professional Development Committee
The Institute of Chartered Accountants of India

28th December, 2023

As members are aware, the RBI has issued a Circular dated April 27, 2021, in respect of “Guidelines for the Appointment of SCAs and SAs of Commercial Banks (Excluding RRBs), UCBs, and NBFCs (including HFCs)”. We have received a communication from RBI wherein it is informed that the RBI and the banks have been receiving queries from the Chartered Accountants/Chartered Accountants firms seeking clarification as to whether concurrent audit assignments would also fall under the framework of point no. 6.4 while assessing and establishing the independence of auditors.

Point no 6.4 states as follows:

• 6.4 The time gap between any non-audit works (services mentioned at Section 144 of Companies Act, 2013, Internal assignments, special assignments, etc.) by the SCAs/SAs for the Entities or any audit/non-audit works for its group entities should be at least one year, before or after its appointment as SCAs/SAs. However, during the tenure as SCA/SA, an audit firm may provide such services to the concerned Entities which may not normally result in a conflict of interest, and Entities may take their own decision in this regard, in consultation with the Board/ACB/LMC.”

RBI has clarified that the Concurrent audit assignments would also fall under the framework of above-mentioned Para 6.4 of Circular dated April 27, 2021.

Members are requested to kindly note the same and ensure compliance of the same.

Professional Development Committee